Now THAT, I do not disagree with. You are absolutely correct about fragmentation. The problem that I am speaking about is twofold;

1) High end Android phones will have a superior selection of games due to their hardware. WP7 won't even have many of these games developed for it due to the vastly outdated hardware.

2) Qualcomm just renamed their chipsets to avoid consumer confusion. They are S1 (WP7 Chassis 1, Nexus One, Droid Incredible), S2 (WP7 Chassis 2, Incredible 2, Thunderbolt), S3 (HTC Sensation, Evo 3D), and S4 (upcoming Android phones). By the time that Mango hits, they will be 2 generations of hardware behind. They will be the entry level for Android games.

So, WP7 users will have one choice of games, games that work with their device. Android users will be fragmented, but the baseline users will have the same limited selection as WP7 users. THAT is my issue. It's a good choice for Microsoft to support only one range of chipsets as it allows them to get the most out of the hardware for the OS itself. But, by choosing the minimum possible spec, they are limiting what the 3rd party developers can do with these devices.